Call A Cab For Investment

December 23, 1985|The Morning Call

Looking for a great investment opportunity? No, it's not the new American gold coins or zero coupon bonds or hog futures. Would you be interested in rushing out and purchasing a little-known commodity whose value has risen from $75,000 to at least $100,000 in three months? If you are the Daddy Warbucks of your neighborhood, check out the possibility of dumping your spare change into . . . New York City taxi medallions!

These medallions are not made of precious metals, nor are they encrusted with glimmering jewels. All a taxi medallion is is a license to operate a hack in the Big Apple. But, the rate of inflation in the medallion market is astounding. Just ask Stanley Cheung, a 30-year-old cab driver who just paid $100,000 for a medallion. And he tells the tale of someone who more recently shelled out $105,000 for a license that cost $75,000 in September.

Here, in this arena of screeching brakes, fender benders and unrestrained expletives, the law of supply and demand operates splendidly. The number of medallions was frozen by law nearly 50 years ago at nearly 12,000. The demand, however, continues to escalate.

Do we have here the trendiest of investment possibilities? Move over, Krugerrands.